On early Monday (April 7) in Asia, cryptocurrency values dropped significantly, affected by the ongoing trade conflicts in America.
A report from Bloomberg News revealed that Bitcoin’s value plummeted by approximately 7% from Sunday night (April 6) into Monday morning in Singapore, reaching a low of $77,077. Meanwhile, Ether, the second-most-popular cryptocurrency, fell to $1,538, marking the lowest intra-day level since October 2023.
These declines coincide with President Donald Trump’s steadfastness on the extensive tariffs that have already wiped out trillions from U.S. stock values. According to the report, U.S. equity-index futures declined as the yen strengthened, indicating heightened volatility in the financial markets.
The report references data from CoinGlass, which indicated that approximately $745 million in “bullish crypto positions” were liquidated over the past 24 hours, the highest amount in nearly six weeks.
The drop observed on Monday is a continuation of a trend that began the previous week after the announcement of new tariffs affecting countries worldwide.
“At present, markets dislike uncertainty, suggesting we may witness further volatile trading in the upcoming weeks and months, delaying the next upward movement (though this is only a postponement) — unless President Trump makes another strong declaration regarding the crypto industry,” commented Stephen Wundke, director of strategy and revenue at the quantitative digital asset investment firm Algoz.
“What is certain is that nothing currently emanating from the White House is assured.”
Prices of digital assets had been on the rise since the election victory of pro-crypto Trump last fall, with Bitcoin reaching record highs on the day of his inauguration.
As noted by Bloomberg, digital assets had previously weathered the market instability triggered by Trump’s initial tariff announcements. However, this recent selloff could signify a shift.
“Right now, macroeconomic factors are driving the activity,” explained Cosmo Jiang, general partner at Pantera Capital, in an interview with Bloomberg. “The pullback due to tariffs is specific and not indicative of deeper economic issues. Just as it was artificially introduced, it can also be removed once the Trump administration feels it has gained concessions from other nations.”
As reported earlier on Monday, all categories monitored in PYMNTS’ CE 100 Index recorded declines last week, with even the most resilient group rising merely 4%.
“Banking stocks observed a nearly 16% decline for the week, as credit risks appear to be escalating; while payments-sector stocks fell by 11%, with consumer spending now at risk of being affected by price shock across various goods, from automobiles to avocados,” stated the report.
In addition, PYMNTS highlighted last week that the latest jobs report indicated trends pointing to a gradual cooling. However, this report was issued before tariff announcements disrupted the stock market, which could lead to businesses becoming more cautious about hiring. As such, the cooling could transition into a “chilling,” the report added.
